Week of July 31, 2017 | Vol. 6, Issue 29
|
Please Note:
We have recently changed the title of our Weekly Newsletter from "Pharma And Healthcare M&A Update" to "Healthcare Trends And Transactions". The content remains the same, but we feel this title better reflects the scope of the information provided. We appreciate your continued interest in receiving weekly content on the Healthcare industry.
|
|
K.K.R. to Buy WebMD and Take Majority Stake in Nature's Bounty
Kohlberg Kravis Roberts said that Internet Brands, a K.K.R. portfolio company, had agreed to buy WebMD Health Corporation for about $2.8 billion
The private equity
giant Kohlberg Kravis Roberts has struck two deals focused on health and wellness, agreeing to buy WebMD
and taking a majority stake in the Nature's Bounty Company. The deal came after WebMD said in February that it would explore strategic options, including a potential sale. Separately, Kohlberg Kravis Roberts said it would acquire a majority stake in Nature's Bounty from private equity rival the Carlyle Group for an undisclosed amount. Carlyle would retain a significant stake in the company, which makes and distributes health and wellness products, like Nature's Bounty, MET-Rx and Sundown Naturals. The deal follows Nature's Bounty's decision last month to sell
the British retail health food chain to L1Retail, an investment fund controlled by the Russian billionaire Mikhail Fridman.
|
Rare disease agency Cambridge Bio goes global with $35M buyout by Irish UDG
Buying the Massachusetts-based communications firm is part of UDG's overseas expansion plans
While UDG is relatively unknown in the U.S., the Cambridge acquisition is its second this month-it also bought Vynamic, a healthcare management consulting firm-and its fifth in the U.S. this year. The Cambridge BioMarketing deal includes $30 million upfront, with additional payments of up to $5 million over the next year based on financial targets.
The appeal of Cambridge BioMarketing is its leading status in the specialty disease arena, an area UDG has targeted as a global market opportunity. The orphan drug market is growing at a quick pace, with an annual compound growth rate of more than 11% through 2022, according
to Evaluate Pharma. The niche drugs are expected to account for more than 21% of all prescription drug sales by 2022, or about $209 billion.
|
Below are summaries and charts with the past week's transactions from the different healthcare sectors. For a detailed table showing data for each industry transaction click on any of the charts or use the download link above. Total transaction values are provided in USD millions.
|
|
|
|
Pharma & Biotech
12 transactions totaling $1,162 million
Supplies, Equipment & Services
14 transactions totaling $41 million
Healthcare IT & Managed Care
4 transactions totaling $0
Healthcare Facilities & Distributors
9 transactions totaling $19 million
|
|
|
|
|
|
Pharma & Biotech
12 private placements totaling $89 million
Supplies, Equipment & Services
16 private placements totaling $97 million
Healthcare IT & Managed Care
6 private placements totaling $8 million
Healthcare Facilities & Distributors
0 private placements
|
|
|
|
|
Pharma & Biotech
10 public offerings totaling $196 million
Supplies, Equipment & Services
4 public offerings totaling $30 million
Healthcare IT & Managed Care
0 public offerings
Healthcare Facilities & Distributors
0 public offerings
|
 |
|
 Each week, w
e provide updated trading
comps for leading comp
anies from numerous healthcare subsectors.
To the right you will see a high-level breakdown of median revenue and EBITDA multiples for each of the specific subsectors
For a complete trading comp analysis (including the individual equities that comprise the subsectors), click on the table to the right or use the download link from the top of this newsletter.
Note: data reflects prior week close.
|
RECENT INDUSTRY HEADLINES
A Sampling of Relevant Industry Headlines from the Last Week
Below are snippets from relevant industry news articles from the past week. For additional information or the article's complete text, click the headline link to view the original publication.
|
Generic drug makers are turning to M&A to shield themselves against a concerted effort by U.S. regulators to crack down on steep drug prices.
Impax Laboratories Inc (
IPXL.O
), Perrigo Company Plc (
PRGO.N
) and Alvogen Inc have been talking to advisers about strategic options for their generics businesses, ranging from acquisitions to increase scale to an outright sale of the units, people familiar with the matter said this week. The persons declined to speak for attribution because the discussions are private. Meanwhile, Mallinckrodt Plc (MNK.N), one of the largest producers of the generic opioid painkiller oxycodone, has been exploring a sale of its specialty generics unit, Reuters has previously reported.
July 26, 2017 -
Fierce Biotech
Senseonics and TypeZero Technologies first tied up
on "artificial pancreas" R&D in May, and now, Roche is getting in on the action. The trio will develop
a long-term, closed-loop system for blood glucose control to be tested in the NIH-funded International Diabetes Closed Loop Trial (IDCL). Senseonics' Eversense continuous glucose monitoring system includes a sensor which is implanted under the skin of the upper arm. It lasts 90 days and measures glucose levels in the interstitial fluid and sends this data via a transmitter to a mobile app.
Galvani, EnteroMedics ink research deal around obesity implant
July 26, 2017 - Fierce Biotech
EnteroMedics has signed on
to modify its obesity-treating neuromodulation system for Galvani Bioelectronics-GlaxoSmithKline and Verily's $715 million joint venture
- to use in preclinical research. St. Paul, Minnesota-based EnteroMedics markets the vBloc System, which targets feelings of hunger to treat obesity. Implanted in the abdomen via a laparoscopic procedure, the Maestro device delivers electrical pulses to the vagus nerve through a pair of leads. The stimulation blocks vagal nerve signals to control feelings of hunger and discourage overeating.
|
UPCOMING EVENTS
An Overview of Events Hosted or Attended by the Bourne Partners Team
|
7th Annual Global Healthcare Executive Summit
October 4, 2017 | Charlotte, NC
|
|
As an international, healthcare-focused merchant bank and financial advisory firm, we provide world-class services and capital to middle-market healthcare companies around the globe. We aim to keep our clients well-informed of healthcare news and events. With this additional insight in mind, together, we can recognize trends and opportunities that benefit our clients. We hope that you will reach out to Bourne Partners to help execute your healthcare operational and transactional needs. To learn more about our firm, visit our website or utilize the links below to engage with us on social media.
Sincerely,
The Bourne Partners Team
Bourne Partners
550 South Caldwell Street
Suite 900
Charlotte, NC 28202
704-552-8407
|
STAY CONNECTED
|
|
|
|
|
